VC firm Sequoia Capital is launching a fund with up to $600 million to invest in cryptocurrencies and other digital assets
- Sequoia Capital is creating a new fund that will have up to $600 million to invest in crypto.
- The Sequoia Crypto Fund will focus on liquid tokens and digital assets.
Sequoia Capital has launched a new fund with up to $600 million of investment power that will focus on cryptocurrencies as it delves deeper into the $2 trillion market.
"While we've invested in both equity and tokens over the last five years, many have asked that we take a more active role in managing our tokens, including staking them, providing liquidity, participating in governance and trading through their platforms," the firm said on its website Thursday. "Our network of builders at Ethereum, Solana, major DeFi protocols and beyond have urged us to do the same.
With that, between $500 million and $600 million will be available for the firm's new Sequoia Crypto Fund to focus on liquid tokens and digital assets.
"Our goal with this fund is to participate more actively in protocols, better support token-only projects, and learn by doing ourselves," Sequoia partners Michelle Bailhe, Shaun Maguire and Alfred Lin said in the statement.
Sequoia Crypto Fund is one of the firm's first sub-funds under its new capital structure called Sequoia Capital Fund, an open-ended liquid portfolio.
Sequoia Capital in recent activity has led funding for Fireblocks, a cryptocurrency custody platform that works with more than 800 institutions. The company as of last month had raised more than $1 billion since it was established in 2018, as crypto infrastructure has become a hot area of broader investment interest.
Sequoia said Thursday it plans to keep supporting open-source research and to continue partnering with crypto teams across various stages of their expansion.
Started in 1972, Sequoia Capital has invested in a number of companies that have evolved into tech industry heavyweights including Alphabet's Google, Yahoo, and PayPal.